This article is based on an official press release from Saab.

Saab Reports Historic 2025 Results: Record Orders Drive Growth Target Upgrade

Swedish defense and security company Saab has released its Year-End Report for 2025, detailing a historic period of financial performance driven by heightened global geopolitical tensions and a surge in European defense spending. According to the company’s official figures, Saab secured record-breaking orders in the fourth quarter alone, prompting management to significantly upgrade its medium-term growth targets for the 2023–2027 period.

The report highlights a dramatic increase in demand across Saab’s portfolio, ranging from advanced fighter jets to naval systems and surveillance solutions. With a total order backlog now reaching SEK 275 billion, the company is positioning itself to meet sustained demand through the latter half of the decade. In a statement accompanying the release, Saab President and CEO Micael Johansson emphasized the company’s strong execution during a volatile year.

“2025 was a record year for Saab… We have had much stronger sales for the first three years of the target range and for the remaining two years this implies an average growth of around 20% per year.”

, Micael Johansson, President and CEO of Saab

Financial Highlights and Record Bookings

The fourth quarter of 2025 proved to be a pivotal period for the company. According to the financial results, Saab recorded SEK 100.1 billion in order bookings during Q4, contributing to a full-year total of SEK 168.5 billion, a 74% increase year-over-year. This surge has pushed the company’s total order backlog to SEK 275 billion, providing significant revenue visibility for the coming years.

Key financial metrics for the full year 2025 include:

• Sales Revenue: SEK 79.1 billion (up 24%).
• Operating Income (EBIT): SEK 8.1 billion (up 42%), with a margin of 10.2%.
• Net Income: SEK 6.4 billion (up 51%).
• Proposed Dividend: SEK 2.40 per share, an increase from SEK 2.00 the previous year.

Based on these results, Saab has revised its organic sales growth target. The company now aims for a compound annual growth rate (CAGR) of approximately 22% for the period 2023–2027, an upgrade from the previous target of roughly 18%.

Strategic Wins: The “Mega-Deals”

The massive influx of orders in late 2025 was driven by three major strategic contracts that validate Saab’s technology across air, sea, and surveillance domains. The press release and subsequent reporting highlight the following key agreements:

Colombia Selects Gripen

In a significant export victory, the Colombian government selected the Gripen E/F fighter system. The contract, valued at approximately EUR 3.1 billion (SEK 35 billion), covers the delivery of 17 aircraft. This deal establishes a long-term strategic partnership in South America and marks a successful expansion of the Gripen program against international competitors.

Surveillance and Naval Dominance

Saab also secured a breakthrough in the European NATO market with an order from France for two GlobalEye Airborne Early Warning & Control (AEW&C) aircraft, valued at SEK 12.3 billion. Additionally, the Swedish Defence Materiel Administration (FMV) awarded Saab a SEK 9.6 billion contract to complete and deliver two Blekinge-class (A26) submarines, ensuring the modernization of Sweden’s underwater capabilities through the 2030s.

AirPro News analysis

While the operational numbers are undeniably strong, the market reaction suggests a complex investment landscape. Despite beating expectations on earnings and revenue, Saab’s share price saw a slight decline immediately following the report. This “sell the news” reaction likely indicates that investors had already priced in a perfect execution scenario given the known geopolitical tailwinds.

Furthermore, the upgrade in growth targets to ~22% CAGR signals management’s confidence that the current “defense boom” is not a temporary spike but a structural shift in European security architecture. The success of the GlobalEye in France is particularly noteworthy; it represents a shift toward European strategic autonomy, where major NATO powers are increasingly opting for continental solutions over non-European alternatives. The challenge for Saab now shifts from winning orders to industrial execution, specifically, managing supply chains and expanding workforce capacity to deliver on a SEK 275 billion backlog.

Sustainability and Future Outlook

Beyond financial metrics, Saab reported progress on its sustainability goals. The company achieved a 7% reduction in CO2 emissions year-over-year, remaining on track for its 2030 target of a 42% reduction. Looking ahead to 2026, the company stated it is heavily investing in capacity expansion, including new production facilities in the United States, Sweden, and India.

CEO Micael Johansson noted that while the geopolitical landscape remains uncertain, this instability is driving a sustained global demand for deterrence capabilities. The company’s focus will now prioritize the efficient conversion of its record backlog into delivered systems.

Sources

• Saab Year-End Report 2025